How the ‘3 Ds’ are leading to a structural shift in inflation

commodities-1228-ph By Tim Pickering There was in the summer what we called a "misguided level of comfort that governments and central banks were communicating" given year-over-year inflation had recently fallen: the consumer price index in the United States had dropped to 3.2 per cent (increase) after peaking in June 2022 at 9.1 per cent. What's happened since? We are still at 3.2 per cent. Bloomberg recently captured the sentiment, "U.S. consumers are shouldering a burden unlike anything seen in decades — even as the pace of price increases has slowed." Importantly, prices are still increasing, albeit at a slower rate…